Hot Topic, which sells rock n' roll-inspired apparel and
accessories as well as music, posted a quarterly net loss of
$1.4 million, or 3 cents a share, compared with $0.8 million,
or 2 cents a share, a year earlier.

The first quarter includes an expense of 1 cent a share
related to Hot Topic's online music venture.

Analysts, on average, had expected the mall-based retailer
to post a loss of 4 cents, before special items, according to
Reuters Estimates.

Sales at the company's Torrid stores grew about 15 percent,
while sales at its Hot Topic stores fell 2.5 percent.

The company, which also operates the Torrid plus-size chain
for young women, said total sales rose 1.1 percent to $159.0
million. Wall Street analysts had expected revenue of $158.4
million.

Hot Topic, which has been upgrading stores and merchandise
in an attempt to reverse a lingering slump, has avoided
excessive discounts that eat into profit margins, and scaled
back on promotional activity during non-peak traffic periods.

However, the company, whose rivals include Abercrombie &
Fitch (ANF.N: Cotización), American Eagle Outfitters Inc (AEO.N: Cotización) and Wet
Seal WTSLA.O, saw sales at its stores open at least a year
drop about 3 percent in the quarter.
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